CRM - CUSTOMER RELATIONSHIP MANAGEMENT

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Goods are made to forecast and sold from inventory.USED WHEN:-Demand is constant and predictable.-Only a few product options exist.-Order fulfililment lead time requirements are shorter than manufacturing lead times.

INFO NEEDED FOR PRODUCTION PLAN-Forecast by time period for planning horizon.-Opening inventory.-Desired ending inventory.

LEAN MANUFACTURING

TQM - TOTAL QUALITY MANAGEMENT

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Approach that focuses on reducing defects by decreasing process and product variation.IMPORTANT ELEMENTS:-Variation causes defects.-Goal is to have no more than 3.4 defects per million opportunities, which constitutes a six sigma-level performance.-Continuous improvement and problem solving to reduce variation and defects.

SIX SIGMA

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Holistic management philosophy based on the principle that systems have constraints limiting their ability to meet goals.

Objective is to achieve throughput goals by identifying and managing a few leverage points.

TOC - THEORY OF CONSTRAINTS

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5 OBJECTIVES OF MANUFACTURING

To produce:-The right products-Of the right quality-In the right quantities-At the right time-At minimum cost, or at the right price

CUSTOMER EXPECTATIONS / Characteristics that provide value to the customer:

Name the three manufacturing process options.

-INTERMITTANT (lot or batch)-FLOW -REPETITIVE or LINE -CONTINUOUS-PROJECT (fixed position)

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Name the characteristics of an INTERMITTANT MANUFACTURING PROCESS LAYOUT.

-also called PROCESS, JOB SHOP, or FUNCTIONAL Layout.-Jobs pass through functional departments in lots or batches.-Workstations are not dedicated to one type of product.-Volume is not high enough to justify an assembly line.-High WIP inventory; longer lead times.

Describe the characteristics of a CONTINUOUS FLOW MANUFACTURING PROCESS.

-dedicated machinery & fixed routing.-High volume-Product layout-Non-discrete products, such as liquids-low WIP inventory-Higher capital investment**Often raw materials into products, such as gas or steel by the use of mixing, chemicals, heating, cooling or pressure

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Describe the role of Manufacturing.

The primary goal of manufacturing is to take raw materials and create value for producers and customers. By doing this, wealth is created for society as a whole.

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-Voluntary strategic policy initiative for businesses interested in social justice and sustainable development.-More than 8000 memebers-Alignment of business operations with principles in four key areas: -human rights -labor practices -environment -anti-corruption-Adoption of UN Global Compact Management Model-The management model provides detailed guidelines for incorporating the ten principles in business strategies and operations.

The UN Global Compact

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What are the components of the manufacturing business model.

-DEFINING PRODUCTS -product positioning (quality vs. price) -breadth of product line -price, quality, and design -brand name vs. generic -packaging -returns allowedDEFINING CUSTOMERS/MARKETS: -types of customers; for example, industrial, consumer, institutional, and government -market segments -sales and distribution channels -market share and profitabilityTHESE DECISIONS WILL HAVE A MAJOR INFLUENCE ON PRODUCTION DEFINITIONS, SUCH AS:-choice of manufacturing environments-choice of manufacturing process

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-Understanding and meeting customer wants and needs-Two-way communication-Working with customers to solve problems.

PROVIDING CUSTOMER SERVICE AND SUPPORT

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Describe the impact of four significant aspects of the global business environment on manufacturing.

-GLOBAL COMPETITION - business now have to compete with companies from all over the world. Many companies now have global markets. How does these companies differentiate their products and services from the competition.-ECONOMIC, GOVERNMENT, AND REGULATORY INFLUENCES - the world economy affects the global supply chain - from availability of resources to consumer sales. Also, government and regulatory agencies can enact rules and regulations that influence the global supply chain in many ways.-CUSTOMER EXPECTATIONS - customers buy a solution to a need or problem. Demand is usually market driven and the supplier must determine characteristics that provide value to the customer and fulfill the customer's needs.-CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY - growing international consensus for businesses and their supply chains to exercise corporate responsibility in areas like HUMAN RIGHTS, LABOR PRACTICES, ENVIRONMENT, and ANTI-CORRUPTION to promote responsible economic growth to equally benefit all segments of society.

TRADITIONAL INTERNAL SUPPLY CHAIN STRUCTURE

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-Supply Chain is a subset of the VALUE CHAIN.-Support processes are important but not considered primary value chain processes.-Based on the efficiency of manufacturing operations, but not at the expense of other corporate goals (ex. cost reduction, revenue growth, market growth, shorter lead times, better quality, customer satisfaction and value.-Can better balance the interests of manufacturing and other functions such as marketing and finance.

CROSS-FUNCTIONAL SUPPLY CHAIN

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-Important concept...consists of processes that directly add value to the products and services that a company sells. Can consist of procurement, production, and distribution...as well as customer order management and reverse logistics aspects of customer service.-also includes processes other than those directly involved in handling and transforming materials (ex. marketing, sales, product development). -there are also support services that are also very important (ex. HR, finance)

VALUE CHAIN

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Give examples of common supply chain conflicts.

-INHERENT CONFLICTS OF INTEREST AMONG VARIOUS FUNCTIONS -production efficiency in manufacturing and finance -high levels of customer service in marketing and finance -low inventory investment within finance-MARKETING GOAL TO INCREASE REVENUE will require: -high customer service -low production efficiency, or interrupting production schedules, short runs, etc. -high inventories in order for products to always be in stock-PRODUCTION GOAL TO REDUCE MANUFACTURING COSTS will require: -high production efficiency (long runs, few products, fewer setups, less flexibility, lower customer service) -high inventory of raw materials and finished goods to eliminate production interruptions.-FINANCE SETS A GOAL TO INCREASE PROFIT, INCREASE CASH FLOW, AND REDUCE INVESTMENT...will require: -high customer service to maximize profit -high production efficiency to minimize costs -low inventory to minimize investment.

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Explain ways to resolve common supply chain conflicts.

-Use sales and operations planing to balance inventory, customer service, and production efficiency during the production planning process.-Clearly define responsibility for the materials management function that facilitates planning and manages the day-to-day tradeoffs that are sometimes necessary.-applying productivity systems such as lean, quality systems, and theory of constraints to speed up processes and reduce waste to offset the effects of the conflicts.